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files a petition alleging some error in the determination of the
penalty, the taxpayer’s challenge generally will succeed unless
the Commissioner produces evidence that the penalty is
appropriate. Swain v. Commissioner, supra at ___ (slip op. at
12). The Commissioner, however, does not have the obligation to
introduce evidence regarding reasonable cause or substantial
authority. Higbee v. Commissioner, supra at 446-447.
Respondent submitted, and the Court received as evidence,
petitioner’s 1997 tax return, Forms W-2 and 1099 issued to
petitioner, and several documents petitioner submitted to the
IRS. Furthermore, as noted supra, petitioner is deemed to have
admitted certain facts. On the basis of the evidence, we find
that petitioner had a substantial understatement of income tax.7
Petitioner did not present any evidence indicating reasonable
cause or substantial authority. Id. Accordingly, on this issue,
we sustain respondent’s determination.
C. Conclusion
We have sustained all of respondent's determinations.
Therefore, we shall enter a decision for respondent.
III. Section 6673(a)(1)
Section 6673(a) authorizes this Court to penalize up to
7 Petitioner was required to show $8,339 of tax on her 1997
return; however, she reported zero. Petitioner’s understatement
exceeds both 10 percent of the tax required to be shown on her
return ($834) and $5,000.
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